HI STEFAN!
>>>The question is how would you prepare trading for a market like that?
If we had gapped lower and you thought this is the start of a correction, you should obviously wait to take any longer-term position but you could still buy the gap down for a quick bounce. In that case, you would buy stocks that are relatively strong and gap down to some sort of short-term support(within last few days).
>>>Should i look for some stocks that didn't sell off in the hope they now will? but why short the strong ones?
It really depends on the degree of correction that you expect and % of profit that you intend to make. If you think this is the start of a bigger correction, you can short almost anything. Otherwise, you can short stocks that went up in the latter part of this rally.
>>>Did you have a good trip?
Since I am a positive person, yes. Many little things went wrong but that's all they were, little things.
>>>goal of making 400%/y. Was that actually achievable?
No. The best that I have done is 275%. This year, I am up 200%. As you grow your investment capital, it becomes increasingly difficult to do 3X, 4X, or higher. However, your 1X or 2X becomes a larger sum of money which is good.
I do believe that if you know what you are doing and trading is your only profession, you can do 4X.
Suggestion, take my S&M list and sort it based on price every night(use yhoo's java manager). Take the last 20(most lost in price) and make up a new list and update it the following night. Take the last 10 and make up a new list.....Meanwhile check the news to make sure there is no fundamental reason for the drop in any of those stocks..........if you're patient, in a few days you'll see the stocks at the bottom of your list are ready to turn up.
Do the same for shorting, except use the 1st 20(most gained in price).
Take care;
Clint
PS, let's see if BGEN can lift GILD & MEDI. |
